LISTEN: Rating agencies may wait for ANC elective conference

Cape Town - While there is a chance that South Africa may be downgraded to the non-investment grade at a upcoming ratings review in November, rating agencies may wait to see the outcome of December’s ANC elective conference, according to Standard Bank economist Kim Silberman.

Silberman was talking to Fin24 in the wake of Finance Minister Malusi Gigaba’s maiden mini budget, which he presented to Parliament on Wednesday afternoon.

She said the market would likely react negatively to Gigaba’s budget, due to SA breaching its expenditure ceiling by R3.9bn, and Gigaba’s acknowledgement that SA tax authorities face a R50.8bn budget hole.